In his first interview as Managing Director, L’Oréal Travel Retail Asia Pacific (TRAPAC), Jesus Abia brings TRBusiness up to date on his first few months in the role and what’s in store for the beauty powerhouse in the region.

“I am invigorated to be back in Asia Pacific, one of the most diverse and exciting regions, driving huge growth opportunities in the beauty travel retail space,” he said.

Among the key developments on the radar is the company’s debut Aesop store in China’s tourism hotspot of Hainan.

“We will open our first-ever Aesop store in Hainan, but importantly we are taking our time to do it, and make it a perfect experience for our travellers,” he told TRBusiness.

“We see huge potential in our key regions, as well as in markets where the brand is already very strong in the local markets.”

The luxury beauty brand was acquired by the Group back in 2023, and there are big plans for strengthening its presence in the region.

Managing Director, L’Oréal Travel Retail Asia Pacific (TRAPAC), Jesus Abia.

“In Travel Retail APAC, Aesop is a valued addition to our strong brand portfolio,” said Abia. “We are looking forward to building upon the brand’s values and bringing to life its unique consumer value proposition in our distribution.

“Aesop is all about elevating the experience of living, and its retail expression will be different around the world. You can anticipate that every store will be unique to the culture it is in, and made with local materials.”

L’Oréal has big plans for Aesop in APAC travel retail.

In other news, L’Oréal recently purchased a 10% stake in Galderma Group, a major player in injectable aesthetics, begging the question as to whether aesthetic treatments may make their way into travel retail at some point in the future.

On that, Abia comments: “We constantly do strategic envisioning of the travel retail of tomorrow, and indeed this industry will keep evolving as we shape the future. Watch this space.”

Hitting the ground running

Abia took over the MD TRAPAC role from Tao Zhang effective 1 July building on his 14-year tenure at the company, most recently as General Manager Europe for the Luxe couture brands.

“My approach to leadership today is very much shaped by one of the most transformative experiences in my career – working for many years in L’Oréal Travel Retail, where I honed my entrepreneurial chops in effective negotiation and agility in an ever-changing landscape,” he said.

“I am a huge proponent of people-first: that all my teams develop holistically with a great spirit of conquest; and I am energised by the energy and passion of our people whom I have met in our offices and all our markets.

“I believe in the critical importance and strategic vision of building a future-forward TR APAC together: Harnessing the power of our brands and driving the development of a robust beauty travel retail ecosystem with our retailers and partners, to create active value for our consumers.”

Green shoots in North Asia

Abia has taken the reins in the region at an exciting time in the recovery trajectory. According to the Half-year Financial Report (to June 2024), L’Oreal Group’s travel retail division in North Asia saw the “first signs of improvement” following a challenging landscape post Covid marred by slower-to-return passenger numbers.

Takami is the first-ever Japanese clinic-native skincare brand in L’Oréal’s portfolio.

“Our results are a testament to the resilience and adaptability of our business,” said Abia. “We have some of the most captivating, best-in-class brand stores and animations, and drive our online and offline full-funnel engagement offering seamless end-to-end connected traveller journeys.

“We also have a well-filled innovation pipeline of all our brands, and exciting new brands such as Aesop and Takami,” he added. “We remained committed to driving growth and delivering value to our consumers and stakeholders.”

Looking at China specifically, the retail industry has been grappling with low consumer confidence as well as marked changes in travel behaviours and preferences, including a greater share of Free Independent Tourist (FIT) travellers.

“Indeed, it is not just beauty, but the total travel industry that has been impacted by the changes in Chinese consumer travel,” said Abia. “While it is true that the landscape is changing, this is excellent as we are well-poised to shape the travel industry and seize opportunities.

“Chinese consumers are traveling in smaller groups, and redefining luxury: where it’s not just about material desires, but rather as opportunities for personal fulfilment, new learnings, enrichment and cultural experiences.”

Moving with the times in China

These evolving consumer insights are driving L’Oréal TRAPAC to stay a step ahead with a four-pronged approach. This involves delivering compelling sense of place activations (such as the Kiehl’s Loves Hainan campaign that reflects the island’s culture and heritage); co-creating personalised products and experiences enhanced by the use of AI and beauty tech; crafting exciting online and offline engagements that reach consumers at multiple stages of their journey; and leveraging key strategic partnerships like its collaboration with Alipay+, which is set to reach over 100 million outbound Chinese travellers in global destinations.

The vibrant Kiehl’s Loves Hainan campaign at the Kiehl’s store in Haikou International Duty Free Shopping Complex, in September 2023.

“It’s important to focus on the future,”underscored Abia. “We are actively working on exciting plans that grow value for travellers, and devoting a lot of energy and innovation towards what matters for consumers, when they are engaged with us.

“This is the best time for all of us in the industry to regroup and rethink about business fundamentals, our consumers know that our strengths and excellence of L’Oréal Travel Retail is how we have the best brand portfolios, the most immersive experiences, the best innovations for their beauty needs.”

Maintaining double-digit growth in Japan

Elsewhere in the region, Japan has been a standout market for L’Oréal Groupe, maintaining double-digit growth in HY2024, spurred by the healthy return of tourism.

In October, Lancôme became the first commercial brand to transform the Jewel Changi Airport skytrain to mark the launch of the worldwide exclusive Changi 1st: Génifique Ultimate Travellers’ Repair Clinic at the Singapore hub.

As such, ensuring this distinctive consumer group is well catered to is top of mind.

“Japanese travellers are passionate about tailored experiences and personalisation, and desire deep insights into beauty routines and knowledge such as fragrances, skincare, makeup, hair,” said Abia.

“This year, our brands Maison Margiela and Valentino were introduced to the Japanese duty free market for the first time, bringing even more of our most desirable and couture brands to Japanese travellers.”

Millennials and Gen Z to impact Asia TR in 2025

Zooming in on the biggest challenges and opportunities that are expected to face the beauty category in travel retail in APAC in 2025, Abia points to the rise of millennials and Gen Z travellers post-Covid and an “urgent need” to address evolving consumer expectations.

“Immersive engagement, responsible corporations and products, a demand for personalisation, digital touchpoints pre-trip, in-trip, post-trip, and more: all these are the name to the game as consumers seek greater meaning and impact in their travels,” explained Abia. “It is critical to transform travel retail from not just a retail point, but a destination.”

Lancôme Travel Retail APAC’s Changi 1st: Génifique Ultimate Travellers’ Repair Clinic is the largest-ever activation ever at Singapore Changi Airport Terminal 1 Central Piazza in departure transit. 

A good example of a brand experience that harnesses the potential of the full travel ecosystem is the Lancôme Genifique Ultimate launch in Singapore Changi Airport in September.

For this, Lancôme debuted the first-ever AI travel beauty consultant – Génifique AI – and became the first commercial brand to transform the Skytrain going through the Jewel Rain Vortex.

There was also an associated take-over of media screens, with luxury offline and online experiences highlighted through an exclusive WeChat mini program.

All of this was brought to life thanks to the ‘pentarchial’ partnership with the retailer and other strategic partners.

“It is a great example of how we rethink and redesign the way we create value and captivate our consumers,” said Abia.

Mining the huge growth opportunity for beauty

Ultimately, Abia’s “strong confidence” in both the future of travel retail and the beauty industry is evident in his blueprint for growth.

“The appetite for travel keeps growing,” he said. “More people – and younger people – want to travel than ever before. We can see it even in the huge demand for new aircraft in Asia Pacific region, and markets like China increasing visa-free arrangements.”

Add to this the huge growth opportunity for the beauty category with only “one in 10 consumers” buying beauty in travel retail, according to Abia, who is focused on meeting the needs of consumers in exciting new ways.

“We have a winning portfolio of brands across all consumer categories, and a constant pipeline of new brands which consumers are eagerly awaiting,” he said.

For L’Oreal TRAPAC, success hinges on delivering powerful retail expressions for its brands and dialling up engagement with immersive retailtainment – something we can expect to see activated even more intensely in the coming months and into 2025.

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